International Marketing

Introduction

We discussing about our topic “international marketing”. We discuss about it definition, benefit and problem that effect the operation of the company who doing this types of marketing that carried out by companies to overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm. International marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. In this topic, we use Malaysia airlines as an example for international Marketing. This is because Malaysian Airlines System Berhad gain corporation with a vision of global expansion and is the proud national airline of Malaysia, serving various international and domestic destinations. Now, Malaysia Airlines currently flies to 60 international destinations in Asia, Oceania, the Middle East, Europe, North America, Africa and South America plus 16 destinations within Malaysia.

Definition

International marketing is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. For the purposes of this lesson on international marketing and those that follow it, international marketing and global marketing are interchangeable. International marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. In simple words international marketing is the application of marketing principles to across national borders. In order for an international firm to function properly, cultural, social, economic, and legal forces within the country must be clearly understood. The task of International marketing is more difficult and risky than expected by many firms. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. The intersection is the result of the process of internationalization. (International marketing, the free encyclopedia, http://en.wikipedia.org/wiki/international_marketing.

Many writers have offered different suggestions as to what the discipline of international marketing should study. Cateora (1993) defines international marketing as the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation.  Besides that, international marketing means identifying needs and wants of customers, providing products and services to give the firm a differential marketing advantage, communicating information about these products and services and distributing and exchanging them internationally through one or a combination of foreign market entry modes. International marketing is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. For the purposes of this lesson on international marketing and those that follow it, international marketing and global marketing are interchangeable. (International marketing strategy. Pg.12.Frank Bradley. 4^th edition.)

Businesses choose to explore foreign markets for a host of sound reasons. Commonly, firms initially explore foreign markets in response to unsolicited orders from consumers in those markets. In the absence of these orders, companies often begin to export to: establish a business that will absorb overhead costs at home; seek new markets when the domestic market is saturated; and to make quick profits. Marketing abroad can also spread corporate risk and minimize the impact of undesirable domestic situations, such as recessions. Companies choosing to market internationally do not share an overall profile; they seem to have two specific characteristics in common. First, the products that they market abroad, usually patented, have high earnings potential in foreign markets; in other words, the international sale of these products should eventually generate a substantial percentage of the products' total revenue. Also, these products usually have a price or cost advantage over similar products or have some other attribute making them novel and more desirable to end users abroad. Second, the management of companies marketing internationally must be ready to make a commitment to these markets. They must be willing to educate themselves thoroughly on the particular countries they choose to enter and must understand the potential benefits and risks of a decision to market abroad. (International Marketing, duties & benefits, www.referencesforbusiness.com/encyclopedia/int-jun/international-marketing.html)

Benefits of International Marketing

International marketing has flourished over the years due to the many benefits it has offered to different countries across the world.

•  It enhances the domestic competitiveness. The enhances the domestic competitiveness takes advantage of international trade technology, increase sales and profits, extend sales potential of the existing products, maintain cost competitiveness in your domestic market, enhance potential for expansion of your business, gains a global market share, reduce dependence on existing markets, and stabilize seasonal market fluctuations

• Rapid industrialization. Countries are economically dependent on one another. Every country has to import goods or services and to export as well as import. Some of the countries are dependent on the western countries for superior technology to achieve faster economic growth. International marketing has become prominent because of international interdependence and growing industrialization.

• Cultural exchanges. Peaceful co-existence to a very great extent depends on economic, social and cultural exchanges. International relations can improve when people move to different countries on goodwill visits. Cultural differences separate the countries from one another. This gap can be well connected through international trade and exchange of culture.

• Maintaining international prices. It is not possible that varying prices will prevail in international marketing for long. Various countries market their goods at competitive rates. The comparative cost benefits enjoyed by one country in a particular item can be shared by other countries.

• Helps both developed and developing countries. International marketing is also required to narrow the gap between advanced countries and less developed or developing countries. Even advanced nations must export their requirement. In turn, advances countries must provide concessional terms so that developing countries have no option but to import superior technical know how from developed countries. It is through international marketing that industrially advanced nations provide assistance to developing countries in their struggle towards economic growth. International marketing improves economic relations and reduces the chances of international conflicts. 

• Trade pattern variations

The limitation of International Marketing

When one enters the international market, the company has to deal with the existing trade pattern among the various countries of the world. The policies of the different countries that govern their import and export should also be considered. These patterns obviously impose restrictions on the international trade and the task of the international marketer becomes that of solving the problems through experiences and expertise for attainment of the objectives in the best interests of the film as well as its country.

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National development policy

Every country aspires to attain self-sufficiency by exploiting its raw materials and other resources to the optimum. This aspiration of self sufficiency in industrial development has resulted into the creation of many trade barriers on the free flow of international trade. Other countries must consider their trade barriers while framing their strategy. A country aspiring rapid development, implements strategy of importing capital goods and improves restrictions on the imports of less significant consumer good to avoid, as much as it can, the deficits in trade.

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Procedural complexities

There is no common procedure relating to import and export, and every country has its own procedures, documents and practices relating to international trade. These are complex and difficult essentially of international marketing these days, which pose, problems before the international marketing.